CUTTING COSTS ON GROUP INSURANCE RENEWALS

GROUP INSURANCE RENEWALS: REDUCING COSTS

I wince every time I receive renewal paperwork for groups that GNI serves. I hate opening the attachments because I always fear a large rate increase. I think all Insurance Coordinators feel the same way. So far for this year, rate increases have been on the average about 12 percent.

What are some ways to cut rate increases? By far the easiest way is to increase the deductible. Other things that can help:

  • Increase the co-insurance limit.
  • Eliminate some benefits that are seldom used.
  • Increase the deductible and/or premium for those getting medical care in the USA.
  • Require those 65 and over who are on Medicare to drop off of the group coverage. However, this will only affect the rate increase for the coming year
  • Get quotes from other insurance companies. Sometimes you will be surprised at what rates you can get.
  • Write the insurance company and ask for a rate increase reduction. Once in a while a company will give you one or two points off.